Liti Capital SA, a Swiss blockchain-based litigation funding provider, says the Binance Claim group has received more than 1,000 claims against Binance in the last week alone, following the Binance outages of May 19. The case is poised to become the largest international consumer arbitration case in history.
“To date, more than 2,300 have registered on Binanceclaim.com, and the number is increasing significantly daily,” said Liti Capital’s Executive Chairman and Chief Investment Officer, David Kay, who sits on the Binance Claim Steering Committee.
“Last week we saw more than 1,000 claimants, potentially making this the largest international consumer arbitration in history and a landmark case for the crypto industry,” added Kay, whose Swiss firm has pledged at least $5 million to pay for the claimant’s legal fees.
On behalf of the Binance Claim Steering Committee, on Thursday a letter was sent to Binance requesting that it compensate the increasing number of claimants who lost hundreds of millions of dollars due to system failure on 19 May 2021. If Binance, whose daily trading volume is upwards of $45 billion, refuses to settle with the claimants, the case will be presented before the Hong Kong International Arbitration Centre, the letter warns.
White & Case, LLP, the number one ranked arbitration law firm globally, has taken on the case representing those individuals affected by Binance systems failures, including on 19 May. CNBC reported that Binance, the world’s largest crypto exchange, “has experienced several outages over the years in times of heightened volatility” and David Kay underpinned these facts with an explosive and exclusive interview with the leading US news network.
On 19 May, Bitcoin and Ethereum, the two largest cryptos by market capitalization, posted the most significant drops since March 2020, with the whole cryptocurrency market losing approximately $1 trillion in value. That same day, thousands of Binance users could not exit their positions and stop their losses due to the critical system failure.
In Binance’s very own words, they have warranted that “our policy has been to protect our users so where they experienced actual trading losses due to our system issues, we will offer compensation.”
“Binance’s best option would be to settle and become an industry leader by taking the necessary steps to protect its nearly 14 million registered users worldwide,” commented Kay. “That would give Binance the fantastic opportunity to set an example that the rest of the industry should follow.”
Because of its decentralized nature, the Cayman Island and US-registered crypto trading platform has a corporate structure that is scattered across the globe, making access to legal recourse practically impossible for users who suffer losses due to the platform’s failures. Liti Capital’s funding of the Binance Claim seeks to remedy that.
